He was instrumental in develop the US’s emergency measures, but he won’t be around to see them to their end, at least not in his current role.
Brian F. Madigan, the Federal Reserve’s director of monetary affairs, will resign from his post at the Fed in July, the US central bank said in a statement today.
Mr Madigan, who served as director for three years, helped develop the emergency lending programmes which bolstered the financial system in the wake of Lehman Brother’s collapse, and was a long-time student of Zirp – the zero-interest rate policy the bank plans to continue for an “extended period.”
Mr Madigan won’t follow in his sometime predecessor Donald Kohn’s footsteps and join the Federal Reserve Board. Instead, he will serve as senior advisor to the board and be replaced by the division’s deputy, William B. English, currently the department’s deputy.
Doesn’t look like the move is a major shake-up. Read more
The political heat surrounding Stephen Friedman, the former chairman of the New York Federal Reserve Bank and Goldman Sachs director, is showing no signs of easing.
Over the weekend, the House oversight committee, led by Edolphus Towns, said it had reviewed internal Fed emails revealing “misgivings” within the US central bank that were ultimately “overruled” about letting Mr Friedman own Goldman shares while serving on the NY Fed board. Read more
A security should be for life, not just for Christmas. Or at least part of the security.
That is—paraphrased—one of the many judicious suggestions from the Stability section of the ECB’s fourth Financial Integration in Europe report, released today. The proposals seem clever and heart-warmingly risk averse. But the elephant in the room—whether further integration is actually a good thing—is taken as a given: “the progress towards more advanced and integrated financial markets cannot and should not be seen to stand in contrast with the objective of financial stability,” states the report.
Specific suggestions …on …financial reform …include requirements that originators retain an economic interest in their securitisations, that products be simpler and more standardised, intermediation chains shorter, collateral better documented, the role of ratings reduced and investor diligence strengthened, and – more generally – that capital and liquidity requirements be strengthened and made less pro-cyclical.
Bloomberg is reporting the following from Iceland’s Special Investigation Commission. The English translation of the report is not yet fully available:
Iceland’s government, central bank governors and head of the financial regulator in 2008 all showed negligence in breach of existing laws that allowed the collapse of the island’s financial industry, a report found. Read more
The Serbian government has nominated Dejan Šoškić as the country’s next central bank governor, Reuters reports. The appointment follows the sudden resignation of the incumbent, Radovan Jelasic, amid growing political pressures to back policies aimed at improving living standards; he will stay until replaced.
A Fulbright alumnus, Professor Šoškić is a lecturer and widely-published author, as well as working in and advising central banks and government institutions. His nomination must be approved by parliament, which could take up to two months. No significant shift is expected in monetary policy: stability will be required to secure a €3bn IMF loan.